Transaction in Own Shares

Baronsmead VCT 3 PLC
16 March 2004


TO: LONDON STOCK EXCHANGE, COMPANY ANNOUNCEMENTS


FROM:          Baronsmead VCT 3 plc

DATE:          16 March 2004

SUBJECT:       Transaction in Own Shares


The Board of Baronsmead VCT 3 plc announces that the Company purchased for
cancellation today 100,000 ordinary shares of 10p at a price of 87.75p.

Following this purchase there are now 33,742,410 ordinary shares of 10p in
issue.

For further information please contact:


                  David Thorp, ISIS Equity Partners plc:        0207 506 1100
                  Rhonda Nicoll, ISIS Asset Management plc:     0131 465 1000


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